The Fruit Growers News - October 2002

As the crop is down in Pennsylvania by 19% so goes the budget of the Pennsylvania Apple Marketing Board (PAMB). But that hasn’t stopped the board from continuing to do their work. It has led to some belt tightening. Bonnie Gregus-Riddle, executive director of the PAMB, said the Harrisburg, Penn. organization has not cut back on their advertising and promotion budgets. Actually they have just started a campaign promoting the apple in the East, using ads and billboards. Gregus-Riddle said PAMB decided to cut back where they could, in areas like ordering new fliers – they are just being conservative. “In Pennsylvania our budget faced just about a 19% drop in income,” said Gregus-Riddle. The drop in income was based on the estimates published after the U.S. Apple Association Apple Outlook Conference in August. But the crop that the state does have is worth the promotion, according to Gregus-Riddle. “The crop is still not going to be where it was last year, but the quality of the apples is high. Marketing was not cut back by the board, not by any substantial means. We have taken a tact of generally tightening the belt,” she said.
For instance, if they run low on point-of-sale materials, they will wait until next year to re-order. This year Gregus-Riddle estimated that the board will operate under a budget near $550,000 compared to last year’s income of nearly $650,000. This year’s budget also includes a grant of $40,000 from the state. In New York, the New York Apple Association (NYAA) is breathing a sigh of relief, thanks to grants totaling nearly $625,000 from the state legislature. Otherwise the association would have been tasked with promoting the state’s short crop on 33% less funding – based on the estimated drop in apple production there. Peter Gregg, head of communications with the NYAA, said the smaller crop would have harshly affected the prospective budget. “Money that would have been lost due to a drop in assessments has been made up by a grants from the state of New York,” said Gregg. “We are still going be spending a significant amount on advertising,” said Gregg. “We are rolling out a great campaign.” So, the association will be able to fund an aggressive consumer advertising campaign that will include spots on television, radio, and in print, plus a lot of outdoor advertising in Manhattan. The advertising campaign will target the whole state, starting in October. This year NYAA will receive a one-time grant of $500,000 as well as other miscellaneous grants. Because of these grants, the association will be able to maintain a budget of $1.5 million, versus last year’s nearly $2 million dollar budget.
Patrick O’Connor, interim director of the Michigan Apple Committee, reports that the organization has cut their budget, due to the short crop and potential defaults from two bankrupt shippers of fruit. “We certainly had to downsize the budget,” said O’Connor. The board agreed to substantially cut the budget by nearly $835,000 off of last year’s $1.9 million budget. “The crop is estimated to be smaller compared to last year. We also have the past due collection – which continues to be a real issue.” Total defaults to the commission could approach $433,000 – nearly a quarter of last year’s budget. Attempts to collect funds are ongoing. Michigan Apple Committee’s board approved a proposed budget for the commission based on a low crop estimate of 13.1 million bushels. The new budget cut funds from several areas, and totaled just over $1 million. “Our cash reserve has been tapped and we are taking conservative approach when it comes to budgeting. But we have gone to lengthy measures to keep key strong programs running. “You won’t see dramatic changes in the services that the committee is used to offering the industry,” said O’Connor. “Yes, there is less money to work with, but we are making it go farther by working harder to benefit the industry,” he said. Michigan’s budget also includes grant money to fund an inspector for their Mexican apple export program, and other initiatives. O’Connor said the group continues to apply for grants to fund new promotions.